BSM 600 Lecture Notes - Lecture 4: Dominant Design, Multiple Choice, Bounded Rationality
25 May 2016
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1 pager (can be 2-3 pages) in person right after midterm. Multiple choice, a couple of short answer. Strategy as fit: fitting as per the external environment. Strategy as stretch: internal assessment (resources + capabilities) -> sustained competitive advantage. Companies usually do a combination of stretch and fit. Either you be the change or you accept the change (quickly) Introduction phase -> growth phase -> maturity -> decline. Smart firms must be able to manage this change very well in order to get sustained competitive advantage. Product innovations: new products, new features, massive features so it looks like something new. When the product innovations are declining, there is a dominant design. What a smartphone should look like (a product standard) Dominant design comes in during growth phase. Process innovations: all the efficiencies and distribution, every version is slightly different. When organizations cannot make product innovations, they make process innovations. Maximum amount of money is made during growth phase.
